Fidelity Investments said on Monday it is dropping long-time credit card partners American Express and Bank of America, ending a 12-year partnership that has generated billions of dollars in fees.
Boston-based Fidelity, which has 24 million customers, said its new partners will be U.S. Bancorp and Visa, effective Monday. The exclusive alliance will provide Visa branded credit-card products to U.S. consumers, including Fidelity customers.
The switch is another setback for American Express, which already is reeling from its lost deal with warehouse club retailer Costco Wholesale. AmEx said earlier this year the loss of the Costco contract would hurt profit for two years. AmEx shares are off 25 percent over the past year.
